Correlation between Wealth and Homeownership
- People who have a steady job (2 years of employment) and at least a credit score of at least 660 (credit programs may vary from time to time) would be eligible for the benefits of homeownership which are:
a.) A mortgage which provides financial stability for a family. For example, when a downturn happens in the economy jobs are a loss. Those who own their homes are more likely to be able to use their homes to weather the financial storm. Ex.) A car breaks down, a family medical problem occurs or you want to send your kids to college (potentially saving them hundreds of thousands of dollars).
b.) Homeownership appreciates on an average annually at a rate of 3-5%. In most cases, 20% down in a decent location with a conventional loan or even a first time home buyers loan with a fixed-rate mortgage will benefit from market prices rising.
c.) It's Forced Savings: Paying a mortgage month by month is a forced savings mechanism that builds equity while simply occupying a place of your own. Yes, the responsibility will be all on the Landlord but having skin in the game outweighs not having any. Instead of renting, it strategically makes sense to sacrifice, choose careers based on loan opportunities, and purchase a home for financial security and stability.